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High bidder, but didnt win?

Discussion in 'Bidding & Estimating' started by Burkartsplow, Nov 6, 2008.

  1. Burkartsplow

    Burkartsplow PlowSite Veteran
    Messages: 3,248

    I just got a call about a distribution center I bid on a couple of weeks ago. It is a little over 2 acres and half of it is all bays for trucks obviously. I did not win the bid. The realty company said they were very picky and had zero tolerance due to the fact trucks are coming and going 24/7. They dont want any downtime. So I think this is a high priority lot and it will need extra attention. I bid it out for $15,000 for the year, that includes salting of lot and cleaning all walks and calcium chloride for the walks. I think it is a good number. 5 bids. two thrown out because the companies had no supervision and the other two were close in price. I am the high one. The winning bidder gets it for $12,000 for the season. that is $480 per plow and salt if you figure 25 trips. Last year we serviced our commercial accounts 30 times each last year. I dont know,but i do a few lots that are an acre exactly and i do them for $9000 for the season with salt included. I just think for that type of money you are not going to get that great of service. They made it seem like the place was a hospital and that there was no way it could stop for one second. I priced it like it was one. We do a surgery center and they are very very strict, but pay well. Well I am bidding it for landscaping for next year and now i know how they are when it comes to plowing snow. They have a few other properties in there i am bidding for next year, so if i can get a group of them together i can lower my price. Just wanted to share my story. I am not mad I did not get it, I woul dhave gone higher,but i kept it low, well at least I thought I did. Good luck on your bids..payup.
  2. bribrius

    bribrius PlowSite.com Addict
    Messages: 1,609

    here is something i know a little about (since i work at one). distribution centers.

    The contracts arent decided primarily on price. Least not where i work. It is decided on how close the contractor is to the site, the equipment available, and reputation.
    They take it MORE SERIOUSLY than some hospitals because where as hospitals still have some pork in the budget distribution centers revolve around production. It is cheaper paying a little more for the guy next door with four loaders than paying less and having trucks stuck, trailers stuck , schedules behind and truck drivers/stores waiting for product.
    fifteen k, twenty k, fifty k, all this is peanuts when considering the operation and the amount of money going out the loading dock doors. Not sure what site you bid on but i know where i am we used to run over a hundred loads a day. now we still run in the fifties. That is a substantial amount of money to be sitting on the tar stuck. Not to mention the effect on payroll (all these people are making more than you if you think about it) to have anything behind schedule.
  3. Superior L & L

    Superior L & L PlowSite Veteran
    from MI
    Messages: 3,035

    I knew a guy that did a couple of GM plants. I guess they had a clause in the contract that they HAD to keep the plant running. If parts could not get in and the line shut down then they would fine or back charge them and it was some crazy amount per minute. Im sure all the distribution plants had the same deal with there suppliers since everything is just in time delivery.
  4. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    im not sure about the back charging , i bet it would be costly

    as fare as price is concerned , with the economy the way it is..im sure more places, and managers will be leaning towards the cheaper priced contractor.... if it helps the budget ,
  5. JJyardLLC

    JJyardLLC Junior Member
    Messages: 2

    what do you mean they had no supervision?